Kar Vivad Samadhan Scheme settlement barred continuation of co-noticee penalty proceedings under binding High Court ruling.

Acceptance of a declaration under the Kar Vivad Samadhan Scheme was treated as full and final settlement for persons proceeded against in the same matter, and the jurisdictional High Court had held that proceedings against a co-noticee would abate. The Tribunal noted that the High Court's order was binding within its territorial jurisdiction and applied that ruling to the appellant's penalty matter. On that basis, the penalty proceedings against the co-noticee could not survive.

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Issues: Whether, in view of the settlement accepted under the Kar Vivad Samadhan Scheme and the binding order of the jurisdictional High Court, the penalty proceedings against the co-noticee appellant could continue.

Analysis: The jurisdictional High Court had recorded that, once the main noticee's declaration under the scheme was accepted, the proceedings against the co-noticee would abate and the settlement would be full and final in respect of other persons proceeded against on the same matter. The Tribunal held that the order of the jurisdictional High Court was binding on it within its territorial jurisdiction.

Conclusion: The penalty proceedings against the appellant could not survive, and the appeal was allowed.

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